Orion Oyj Class A · OMXHEX:ORNAV
Orion Oyj Class A — Orion Corp New B Shs — Q3 2024 Earnings Presentation
57 slides from Orion Oyj Class A's earnings presentation, Oct 29, 2024
Slide 1: Orion Equity Story
GRION Orion Equity Story »
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which involve risks and uncertainty factors. These statements are not based on historical facts but relate to the Company’s future activities and performance. They include statements about future strategies and anticipated benefits of
Slide 3: Why to invest in Orion
Why to invest in Orion Nubeqa® main growth driver in Long history and proven short and mid-term track record Long-term growth drivers from R&D pipeline GROWTH INNOVATION Strong commitment to innovation Global pharma market growing 3-6%1 per annum Robust R&D pipeline with focus in pain and oncology D
Slide 4: Orion today – building well-being since 1917
Orion today – building well-being since 1917 Diversified R&D focus in pharmaceutical company oncology and pain ~3,600 employees 8 production sites in >35 countries Financially strong Net sales EUR 1,190 million Impacting millions of Operating profit 275 million lives globally 4 Investor Presentation
Slide 5: Five business divisions
Five business divisions Innovative Medicines Generics and Consumer Health • Innovative medicines developed or marketed by Orion, and EUR 518 million which have patent or other product protection. Animal Health EUR 104 million Branded Products 43% 9% • Orion’s innovative legacy products and in-licens
Slide 6: Solid financial performance despite significant LoEs
Solid financial performance despite significant LoEs1 1,600 35% 500 35% 1.75 120% 1,400 30% 450 25% 1.50 110% 400 30% 1,200 20% 350 1.25 100% 1,000 15% EUR million 300 25% EUR million 1.00 90% 800 10% 250 EUR 5% 200 20% 0.75 80% 600 0% 150 400 0.50 70% -5% 100 15% 200 -10% 0.25 60% 50 0 -15% 0 10% 0
Slide 7: Orion's operations
Orion’s operations Orion’s products are sold globally in >100 countries Sales operations Production and supply chain operations 7 R&D operations Back-office operations
Slide 8: Research & Development
Research & Development 8 Investor Presentation © Orion Corporation
Slide 9: Oncology and Pain focus areas of R&D
Oncology and Pain focus areas of R&D Proven track record in oncology Proven track record in CNS 2 approved 4 innovative medicines approved innovative 2 world-class medicines partnerships with big pharma CNS focus • Research 6 phase III trials on pain in emphasis in pain • 3 finalised and 1 ongoing w
Slide 10: Key clinical development pipeline
Key clinical development pipeline Project/compound Indication PHASE I PHASE II PHASE III REGISTRATION ARANOTE / darolutamide 1 Prostate cancer (mHSPC) Ongoing ARASTEP / darolutamide 1 Prostate cancer (BCR) Ongoing OMAHA1 / opevesostat 2 Prostate cancer (mCRPC) Ongoing OMAHA2a / opevesostat 2 Prostat
Slide 11: Orion's key clinical trials with darolutamide
Orion’s key clinical trials with darolutamide Clinical trial and Indication Primary endpoint and results Key secondary endpoints Status treatment ARAMIS Metastasis free survival Overall survival darolutamide + ADT nmCRPC prolongation by 22.0 months, 31% risk reduction (HR=0.69, p=0.003) Approved 59%
Slide 12: ODM-105 (tasipimidine) and ODM-212
ODM-105 (tasipimidine) and ODM-212 Phase IIa ongoing with ODM-105 for insomnia Phase I ongoing with ODM-212 – TEAD inhibitor Potent and selective alpha 2A adrenoceptor ODM-212 is an oral small molecule blocking agonist TEAD activity • Orion has long experience and proven track record with alpha 2 ag
Slide 13: We have a long history of bringing innovative treatments to market
We have a long history of bringing innovative treatments to market Proprietary human pharmaceuticals developed by Orion 1993 1998 2000 2003 2011 2018 1988 1994 1999 2002 2004 2014 2019 13 Investor Presentation © Orion Corporation
Slide 14: We are a trusted innovator in animal health products
We are a trusted innovator in animal health products Main Orion Animal Health marketing authorisations Kefavet Comforion 1987 1998 2008 2015 2019 2021 1983 1989 2002 2012 2018 2020 Geepenil Benzorion 14 Investor Presentation © Orion Corporation
Slide 15: Strategy and financial targets
Strategy and financial targets 15 Investor Presentation © Orion Corporation
Slide 16: Building well-being
Building well-being Inspired by our Nordic heritage, we strive to empower people around the world to live their lives to the fullest – today and tomorrow. Build a customer-driven Expand to new geographies and Develop Inn portfolio strengthen global partnerships growth enablers ov tiv a e a lt h M r
Slide 17: The dream of a truly global Finnish pharma company – why now?
The dream of a truly global Finnish pharma company has existed for a long time – why now? Promising R&D capabilities and All of our business areas projections for the quality have been have demonstrated coming decade: validated. resilience by establishing The stellar success of We have excelled in g
Slide 18: Building well-being
Building well-being Inspired by our Nordic heritage, we strive to empower people around the world to live their lives to the fullest – today and tomorrow. • Innovative Medicines for Oncology and Pain Build a customer- • Brand products for Respiratory, Central Nervous Innovative Branded driven portfo
Slide 19: Our growth will come in three phases
Our growth will come in three phases STRENGTHEN & BUILD & INVEST ACCELERATE EXPAND Build and invest into Grow & maximize value Strengthen European & global commercial assets of global assets APAC market position and capabilities Inspired by our Nordic heritage, we strive to empower people around the
Slide 20: Financial objectives
Financial objectives Strategy period 2024–2028 Net sales Operating profit CAGR ≥8%1 To grow faster than net sales1,2 Equity ratio ROE ≥50% ≥25% Dividend Annually increasing dividend – payout ratio 50%–100% 20 Investor Presentation © Orion Corporation 1 Base year 2023 2 Without EUR 30.7 million posit
Slide 21: Orion's strategy period 2024–2028 – key takeaways
Orion’s strategy period 2024–2028 – key takeaways Financial objectives provide us a framework to operate and maintain the right balance between expenditure and profitability Increasing Growing EBIT Growing investments to and annually Enable AND revenues build the future increasing of Orion dividend
Slide 22: Capital allocation focus
Capital allocation focus In-licensing / Focused Maintaining In-licensing / Internal R&D acquiring M&As to gain Dividends & increasing acquiring pipeline commercial strategic capacity R&D assets assets competences Higher Lower 22 Investor Presentation © Orion Corporation
Slide 23: Dividend distribution policy and dividend history
Dividend distribution policy and dividend history • Orion’s dividend distribution takes into account distributable funds and capital expenditure and other financial requirements in medium and long term to achieve the financial objectives. EUR Dividend distribution history 1.75 120% 0.20 1.50 0.12 11
Slide 24: Our Sustainability Agenda
Our Sustainability Agenda 24 Investor Presentation © Orion Corporation
Slide 25: Orion's Sustainability Agenda
Orion’s Sustainability Agenda Patient safety Active work for a Care for well-being Ethics at the core as a top priority better environment professionals of our business Despite a challenging global We successfully implemented Orion conducted its first Orion compiled a social environment, our supply
Slide 26: Orion's Sustainability Agenda and indicators 2023
Orion’s Sustainability Agenda and indicators 2023 Patient safety as a top priority Active work for a better environment Care for well-being professionals Ethics at the core of our business Customer GxP2 audits Greenhouse gas Energy savings Injury rate Code of Conduct complaints by Orion emissions (M
Slide 27: Orion's climate targets are backed by science
Orion’s climate targets are backed by science Validation from the Science Based Targets initiative (SBTi) confirms that our near-term emissions reduction targets are in line with the latest climate science 70% 78% Orion commits to reduce absolute scope Orion commits that 78% of its suppliers by emis
Slide 28: Orion Interim Report January–September 2024
Orion Interim Report January–September 2024 29 October 2024
Slide 29: Q3 2024 – Strong underlying growth boosted by milestone payments
Q3 2024 – Strong underlying growth boosted by milestone payments • Two significant milestone payments, in total EUR 7–9/ 7–9/ 130 million, boosted both net sales and EBIT 2024 2023 Change • Underlying business showed strong growth with Nubeqa®, Easyhaler®, Generics and Consumer Health, and Animal He
Slide 30: January–September 2024 results
January–September 2024 results • Two significant milestone payments, in total EUR 1–9/ 1–9/ 130 million, boosted both net sales and operating Change 2024 2023 profit • Underlying business showed strong growth with Net sales, EUR million 1,108.0 868.5 +27.6% Nubeqa®, Easyhaler® and Animal Health busi
Slide 31: Net sales bridge from 1–9/2023 to 1–9/2024
Net sales bridge from 1–9/2023 to 1–9/2024 0 .8 3.3 , 08.0 5.0 2 .4 .0 8. . MEUR 8 8.5 0. – 2023 2 3 4 5 8 – 2024 1 Simdax® and dexmedetomidine for human use 5 Other products and services (excl. Animal Health and Fermion) 2 Nubeqa® (product sales and royalty) 6 Animal Health and Fermion 3 Entacapone
Slide 32: Operating profit bridge from 1–9/2023 to 1–9/2024
Operating profit bridge from 1–9/2023 to 1–9/2024 0 .8 .3 323.8 55. .2 5 . MEUR 3.2 82.0 2 . – 2023 2 3 4 5 – 2024 1 Product & service sales without sales margin and product mix change and exchange rate effect 5 Milestones 2 Product sales margin and product mix change but without exchange rate effec
Slide 33: Innovative Medicines EUR 367.8 (167.0) million
Innovative Medicines EUR 367.8 (167.0) million (+>100%) • Net sales include EUR 70 million Nubeqa® Nubeqa® sales booked by Orion1 milestone and EUR 60 million item (milestone) 100 related to conversion of MSD collaboration into a 90 lisence agreement 80 • One Nubeqa® sales milestone of EUR 180 milli
Slide 34: Branded Products EUR 207.9 (188.5) million
Branded Products EUR 207.9 (188.5) million (+10.3%) 140 • Easyhaler® product portfolio Sales split 120.3 (+18.3)% continued strong 120 4% growth 101.6 100 • Sales volume of the entacapone 8% products increased but due to 80 declining prices the net sales was MEUR 67.7 61.6 60 lower than in the compa
Slide 35: Generics and Consumer Health EUR 386.2 (383.6) million
Generics and Consumer Health EUR 386.2 (383.6) million (+0.7%) 350 • The revenue of the Generics and Sales split by geographic Consumer Health business 300 286.4 289.7 areas division increased for the first time 250 13% • Reference-priced prescription 200 drugs in Finland showing strong MEUR 10% gro
Slide 36: Animal Health and Fermion
Animal Health and Fermion • Animal Health growth (+20.9%) Animal Health Fermion came from various sources with 100 93.2 70 animal sedatives being the single 90 77.1 60 largest contributor 80 25.8 54.1 53.0 70 50 18.2 60 40 MEUR 50 30 40 30 67.4 58.8 20 20 10 10 0 0 1–9/2023 1–9/2024 1–9/2023 1–9/202
Slide 37: TOP products and total sales split by division
TOP 10 products and total sales split by division EUR vs. Product or product portfolio million 1–9/2023 Sales split in 1–9/2024 1. Nubeqa® 216.3 +79.8% 2. Easyhaler® product portfolio 120.3 +18.3% 3. Entacapone products1 61.6 -8.9% 5% 8% 4. Dexdomitor®, Domitor®, Domosedan®, Antisedan® 25.8 +41.5% 3
Slide 38: Key collaboration agreements
Key collaboration agreements 38 Investor Presentation © Orion Corporation
Slide 39: Global agreement with Bayer for development and commercialisation of darolutamide (Nubeqa®)
Global agreement with Bayer for development and commercialisation of darolutamide (Nubeqa®) Annually tiered royalties to Orion Milestone payments to Orion Amount Year received Initially the average annual royalty rate is ~20% Upfront payment EUR 50 million 2014 ✓ If annual global sales of darolutami
Slide 40: Exclusive global license agreement with MSD/Merck
Exclusive global license agreement with MSD/Merck on opevesostat (ODM-208/MK-5684) and other drugs targeting CYP11A1 Financial terms Key clinical development projects Upfront payment USD 290 million 2022 ✓ Project Phase Indication Trial on Potential milestone payments to Orion total up to USD 1.63 b
Slide 41: Appendices
Appendices 41 Investor Presentation © Orion Corporation
Slide 42: Outlook for 2024
Outlook for 2024 (updated on 11 September 2024) Net sales EUR 1,470–1,510 million Operating EUR 370–400 million profit 42 Investor Presentation © Orion Corporation
Slide 43: 90,372 registered shareholders on 30 September 2024
90,372 registered shareholders on 30 September 2024 By number of shares By number of votes Households (Finnish retail) 6% 3% 5% 7% Non-Finnish holders and 7% 11% nominee-registered 39% Private corporations 13% 7% 61% Public sector 9% Non-profit institutions 33% Financial and insurance corporations 4
Slide 44: Largest shareholders by votes and shares on 30 September 2024
Largest shareholders by votes and shares on 30 September 2024 # Shareholder % of votes # Shareholder % of shares 1 Erkki Etola and companies 6.56% 1 Ilmarinen Mutual Pension Insurance Company 4.03% 2 Ilmarinen Mutual Pension Insurance Company 5.43% 2 Varma Mutual Pension Insurance Company 3.32% 3 Ma
Slide 45: Orion B share performance from January 2016 to September 2024
Share price, EUR 65 60 55 50 45 40 35 30 25 20 30-Sep-24 30-Jun-24 31-Mar-24 Orion B share price 31-Dec-23 30-Sep-23 30-Jun-23 31-Mar-23 31-Dec-22 30-Sep-22 30-Jun-22 OMXH-portfolio 31-Mar-22 31-Dec-21 30-Sep-21 from January 2016 to September 2024 30-Jun-21 31-Mar-21 31-Dec-20 Europe/Pharmaceutical
Slide 46: Net sales and operating profit by quarter (MEUR)
Net sales and operating profit by quarter (MEUR) Net sales Operating profit 500 250 450 400 200 350 300 150 250 200 100 150 100 50 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 280 292 250 255 2020 84 96 65 34 2021 269 255 241 277 2021 75 71 57 40 2022 271 284 492 295 2022 71 82 245 41 2023 278 290 301 321 20
Slide 47: Quarterly net sales by business division (MEUR)
Quarterly net sales by business division (MEUR) Innovative Medicines Branded Products Generics and Consumer Health 246.6 230.2 100 100 160 90 90 140 80 80 120 70 70 60 60 100 50 50 80 40 40 60 30 30 40 20 20 10 10 20 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 2022 2023 2024 2022 2023 2
Slide 48: Quarterly net sales by business division (MEUR)
Quarterly net sales by business division (MEUR) Animal Health Fermion 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 48 Investor Presentation © Orion Corporation
Slide 49: Fixed costs
Fixed costs 7–9/2024 7–9/2023 Change 1–9/2024 1–9/2023 Change Sales and marketing, EUR million -65.8 -49.8 +32.2% -183.9 -162.5 +13.2% Research and development, EUR million -36.7 -27.2 +34.5% -117.1 -90.3 +29.7% Administrative, EUR million -20.0 -14.6 +37.6% -60.9 -54.0 +12.8% 70 60 50 40 30 20 10 0
Slide 50: Key financial figures
Key financial figures 2020 2021 2022 2023 1-9/24 1-9/23 Change % Net sales, EUR million 1,078.1 1,041.0 1,340.6 1,189.7 1,108.0 868.5 +27.6% EBITDA, EUR million 336.5 289.1 487.1 326.4 362.3 220.4 +64.4% % of net sales 31.2% 27.8% 36.3% 27.4% 32.7% 25.4% Operating profit, EUR million 280.1 243.3 439
Slide 51: Income statement
Income statement EUR million 2020 2021 2022 2023 1-9/24 1-9/23 Change % Net sales 1,078.1 1,041.0 1,340.6 1,189.7 1,108.0 868.5 +27.6% Cost of goods sold -434.4 -447.5 -489.0 -531.9 -428.9 -387.6 +10.6% Gross profit 643.7 593.5 851.6 657.7 679.1 480.9 +41.2% Other operating income and expenses 5.4 6
Slide 52: Royalties and milestones
Royalties and milestones Includes EUR 70 million Nubeqa® sales milestone from Bayer and EUR 60 million Includes EUR 228 million upfront payment from related to conversion of collaboration 350 MSD regarding ODM-208 collaboration agreement agreement to exclusive licece agreement for MSD 300 Includes E
Slide 53: Financial position
Financial position EQUITY AND LIABILITIES ASSETS EUR million 9/24 9/23 Change % 12/23 EUR million 9/24 9/23 Change % 12/23 Share capital 92.2 92.2 92.2 Property, plant and equipment 409.8 392.1 +4.5% 400.9 Other reserves 5.3 3.3 +60.4% 4.6 Cumulative translation adjustments -10.8 -10.8 -0.4% -9.8 Go
Slide 54: Development of capital expenditure
Development of capital expenditure 250 200 150 EUR million 100 50 0 Property, plant and equipment Intangible assets VMD (Inovet) acquisition Depreciation, amortisation and impairment 54 Investor Presentation © Orion Corporation
Slide 55: Development of net working capital
Development of net working capital % of net sales EUR million 40% 600 30% 500 400 20% 300 10% 200 0% 100 0 -10% -100 -20% -200 -30% -300 Mar18 Dec18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Jun17 Dec17 Jun18 Jun19 Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Jun 20 Sep20 Sep17 Sep18 Sep19 Sep21
Slide 56: Easyhaler® - One device with several therapy options for asthma or COPD
Easyhaler® - One device with several therapy options for patients with asthma or Chronic Obstructive Pulmonary Disease (COPD) ● Easyhaler® portfolio consists of 6 dry-powder inhaler (DPI) products with several well-known generic active substances for the treatment of patients with asthma or COPD. ●
Slide 57: Upcoming events
Upcoming events Financial Statement Release for 2024 25/2/2025 AGM 2025 planned to be held 3/4/2025 Interim Report 1–3/2025 23/4/2025 Half-Year Financial Report 1–6/2025 18/7/2025 Interim Report 1–9/2025 28/10/2025 57 Investor Presentation © Orion Corporation